Personal Finance SG 2 (1).txt

  1. What is an action that can produce financial gain or loss?
    • Risk
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  2. What is combining investments with different risk levels and market charecteristics?

    Web Def: act of introducing variety (especially in investments); "my broker recommended..."
    • Diversification
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  3. What is the ease with which an asset can be turned into cash?

    Web Def: The availability of liquid assets to a market or company.
  4. What is the IRA
    • Individual Retirement Accoun
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  5. A professionally managed investment program funded by shareholders that trades in diversified holdings.
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  6. Retirement Savings Fund offered by employers; self managed
    • 401K
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  7. What is a savings plan operated by a State or College to help set aside funds to defray future college costs?
    • A 529 Plan
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  8. What is ownership in a corporation purchased in shares?
  9. What is NASDAQ; NYSE & AMEX?
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    Stock Exchanges
  10. What is Dow Jones Industrial Average?
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    30 large companies measuring NYSE performance
  11. What is Standard & Poor's 500 (S&P 500)?
    500 widely held companies whose stock performance serves as a broad measurmenet of changes in stock prices

    ie. they rise/fall everyone else will too
  12. What is NASDAQ Composite Index ($COMPQ)?
    Concentration of (technology) companies; measures NASDAQ  exchange performance

    Web Def: An index that covers the price movements of all stocks traded on the NASDAQ Stock Market.
  13. What is stock price/earnings per share?

    Web Def: What is the ratio of a public company's price per share & its net income after taxes on a per share basis.
    • P/E Ratio
    • (Price Earnings Ratio)
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  14. What is money loaned to a business or government - has maturity date; paid back w/ interest?
    • Bonds
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  15. What is  issued  by U.S. Government; low risk; maturity?
    Treasury Securities
  16. Who sells all investment products (stocks, bonds & funds)?

    Web Def: an individual that arranges transactions between a buyer & a seller, & gets a commission when the deal is executed.
  17. What are 2 online brokers?
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Card Set
Personal Finance SG 2 (1).txt
Investment Notes and SG